Citi Prime Finance Survey shows Hedge Fund Assets doubling in 5 years

New York (HedgeCo.net) – A recent study from Citi Prime Finance projects a doubling of assets in upcoming years. This news comes on the heels of a Reuters report that shows $5 Billion outflows in the month of April.

BarclayHedge founder, Sol Waksman, is quoted “The 3,042 hedge funds reviewed had net outflows of more than $12.7 billion between May 2011 and April 2012, with outflows reported in six of those 12 months. That is a shift from the previous 12 months, when the funds had net inflows of $90.7 billion and only three monthly outflows.”

City Prime Finance is looking to institutional allocations to fill in the gap in a new wave of capital for Hedge Funds.

Both European and US Public Pensions remain committed to hedge fund investments. “I see hedge funds remaining in some way shape or form in our book for the long run. We’ve been in the space much longer than many other pensions and we see our interest continuing. We’re now also seeing more and more other pensions getting into the space,” – US Public Pension

The report goes on to address stability issues which have been clear in markets over the last few years. “While a minority of participants worried that near-term hedge fund performance could endanger future institutional flows, others pointed toward broader macro trends as driving the opposite — a resurgence of active inflows that could rival the wave of money seen in 2003-2007. This was based on a belief that we are close to completing the massive deleveraging that began in 2007-2008, and that a renewed focus on risk assets will benefit the hedge fund industry and encourage investors to increase their allocations.”